Lucid Group, Inc. (NASDAQ: LCID) is an EV manufacturer that is looking to position itself as a leader in the underserved luxury EV niche. While the company has substantial growth potential in this niche, LCID stock has been beaten down since its IPO due to the supply chain woes that hindered the company’s ability to deliver on its production projections. Despite this, LCID stock could emerge as one of the top EV stocks in 2023 as the whole industry is expected to surge thanks to China easing its Covid lockdowns. With the company recently securing $1.5 billion and a deal with Panasonic to supply EV batteries, LCID stock forecast appears to be bright for the future – making its current dip an opportunity for long-term investors.
LCID Fundamentals
Despite offering one of the best EVs in the market today, LCID stock has been hit hard this year – with the stock dropping more than 83% YTD. However, LCID could be on track to rebound in 2023 as it works to ramp up production to meet its reservations. With this in mind, LCID has been greatly impacted by supply chain woes this year leading the company to cut its production goal of 20 thousand vehicles to 12-14 thousand vehicles which was then further reduced to 6-7 thousand. Since the company has been struggling to produce new vehicles, LCID’s reservations were also affected as more customers canceled their reservations. In this way, LCID ended Q3 with 34 thousand reservations compared to 37 thousand reservations at the end of Q2.
Panasonic Deal
While these factors have driven LCID stock to new all-time lows, the company appears to be well-positioned to weather the storm in 2023. Looking to reduce its supply chain risks in the future, LCID entered into a multi-year supply deal with Panasonic to provide it with batteries in addition to its deals with Samsung and LG Chem. Initially, LCID will receive batteries from Japan but the company expects its future orders to be received from Panasonic’s US plant in De Soto, Kansas. In this way, LCID would be qualified for US federal tax credits as it would be meeting the US sourcing requirements for EV purchases. Based on this, LCID has the potential to witness higher demand for its EVs in the future.
Since this deal would diversify LCID’s battery supplies, the company appears to be on track to ramp up production in 2023 as it could now weather any future supply chain woes. With this in mind, LCID now has an enough supply of batteries through 2023. Considering that the company could now increase its sales significantly in 2023, the current LCID stock price could be an intriguing opportunity for investors bullish on the sector’s future prospects.
PIF Investment
Given that LCID requires substantial amounts of cash to finance their production, the company could be in a somewhat safe position financially thanks to Saudi Arabia’s Public Investment Fund’s involvement in the company. Back in 2017, PIF rescued LCID from financial difficulties by becoming a majority shareholder in the company.
Through this relationship, LCID was able to receive $3.4 billion in financing and incentives over 15 years to build and operate a manufacturing facility in Saudi Arabia. In this way, LCID expects to increase its production by 155 thousand vehicles annually. Considering that LCID is currently upgrading its Arizona plant to increase its capacity to 365 thousand vehicles, the company could be well-positioned to produce more than 500 thousand vehicles once these efforts are completed. In light of this, LCID has the potential to become one of the most profitable EV stocks if it delivers on these projections thanks to its pricing model.
Moreover, PIF allowed LCID to secure a 100 thousand vehicle purchase order from the government of Saudi Arabia over a ten-year period – with an initial commitment to purchase 50 thousand vehicles. According to this deal, LCID is expected to deliver 1-2 thousand vehicles annually and increase to 4-7 thousand vehicles annually starting 2025. With the first delivery scheduled for Q2 2023, LCID stock could be poised to soar as this deal could help the company bolster its revenues.
Capital Raise
While the company’s high cash burn rate is concerning for many investors, LCID recently closed its at-the-market offering where the company sold more than 56.2 million shares for nearly $600 million. At the same time, LCID is set to raise $915 million through a private placement of 85.7 million shares to an affiliate of the PIF. By raising more than $1.5 billion, LCID now has enough cash to navigate through its business in 2023 without worrying about liquidity. In this way, LCID stock could be poised to rebound in 2023 from its current dip as the company ramps up production of its portfolio of EVs to meet its reservations.
European Expansion
Meanwhile, LCID appears to be on track for substantial growth in 2023 as the company began delivering its Lucid Air in Europe with its first customers in Germany and the Netherlands. With the company looking to drive more sales in the European markets, LCID has been actively expanding its physical presence in this market. On that note, LCID recently opened its third retail location and first combined service, delivery, and sales center in Europe located in the Netherlands. These openings follow LCID’s earlier studio openings throughout Europe in Switzerland and Germany. Considering the company’s plans for further expansion in Europe, LCID could be well-positioned to secure a market share in the lucrative EU market.
Sapphire Brand
LCID is also preparing to start producing its new Sapphire brand – led by the Lucid Air Sapphire. Considered to be the world’s first fully electric luxury super-sports sedan, this new EV is set to include a three motor powertrain and has more than 1200 hp. Based on this, the Lucid Air Sapphire is expected to be the most powerful sedan in the world. With a price tag of $249 thousand, the Sapphire brand could further position LCID as the market leader for luxury EVs. As the company plans to start production in the first half of 2023, LCID stock forecast appears to be bright for 2023 and beyond.
LCID Financials
Looking into LCID’s Q3 financials, the company reported a decline in assets compared to the beginning of the year as it reported $6.8 billion compared to $7.8 billion. This decline could be attributed to LCID burning cash as the company’s cash balance declined significantly from $6.2 billion to $1.2 billion. Meanwhile, LCID reported $2 billion in short-term investments that could boost the company’s cash in the coming quarters. Meanwhile, LCID slightly reduced its liabilities in Q3 to $3.6 billion from $3.9 billion. Despite this, LCID’s short-term liabilities more than doubled to $686.5 million compared to $318 million.
As for revenues, LCID reported major YOY growth as it started delivering its vehicles in October 2021. With this in mind, LCID reported $195.4 million compared to $232 thousand. However, operating costs increased to $882.9 million compared to $497.2 million a year ago. In light of this, LCID operated at a net loss of $530.1 million – a slight increase from $524.4 million last year. With the company planning to ramp up its production in 2023, LCID appears to be on the right track to further grow its revenues in the coming quarters – making LCID stock forecast to be bullish for investors interested in EV stocks.
Technical Analysis
LCID stock price is currently at $6.7 and has a support at 6.66. Meanwhile, the stock shows resistances near 7.08, 7.67, 8.75, and 9.57. While the stock has been dropping to new all-time lows over the past weeks, many investors are bullish on LCID stock forecast for 2023 as the company is ramping up its efforts to increase production. Based on this, the current LCID stock price could be an opportunity for long-term investors as the company could be on track for substantial financial growth if it delivers on its projections. Considering that the stock’s current dip has been triggered by underwhelming Q3 earnings, LCID could be poised to rebound if it meets its projections in Q4.
Although LCID could further drop to new all-time lows, the stock appears to have formed a new support that has been holding recently. In this way, bullish investors could enter a starter position at the current LCID stock price as the stock could be poised to run in the near future. Despite this, LCID stock remains a long-term hold for many investors thanks to its potential.
Since EV stocks are witnessing a bearish sentiment in 2022, LCID’s accumulation is trending downwards. Similarly, the MACD is bearish, however, it appears to be approaching a crossover soon. The RSI is currently at 36 indicating that LCID stock could be slightly oversold. In light of these indicators, LCID appears to be poised to run in the near-term if it witnesses a surge in volume. With this in mind, LCID has an OS of 1.6 billion and a float of 586.4 million.
LCID Forecast
With LCID trading at all-time lows, the stock presents an opportunity for long-term investors as the company appears to be well-positioned for a major rebound in 2023. As the company is now able to finance its operations throughout 2023, many investors are watching if LCID could deliver on its production projections. If the company delivers on its projections, LCID stock price could be set to appreciate in value. With this in mind, LCID appears to be set to deliver on its projections thanks to its recent deal with Panasonic. Considering that LCID’s failure to meet its projections this year was mainly due to supply chain woes, diversifying its battery suppliers could allow it to combat any future supply chain issues. For this reason, many investors are bullish LCID stock forecast could be bright for 2023 and beyond.
Meanwhile, investors are increasingly bullish on LCID’s European expansion plans where the company opened three retail locations this year Germany, Switzerland, and the Netherlands. Moreover, LCID recently started delivering its first EVs to Europe for its customers in Germany and the Netherlands. Given that the European market is one of the fastest growing EV markets in the world alongside China, LCID could be set to witness a major surge in sales once it successfully ramps up its production.
LCID stock forecast 2025 also appears to be bullish thanks to PIF’s investment in the company. With the company expecting to complete its Saudi Arabia facility in 2025, LCID could benefit from the nation’s Saudi Vision 2030 that aims to transition from fossil fuels to sustainable energy. With the company already in an agreement with the Saudi government for the delivery of 100 thousand vehicles over the next 10 years, LCID appears to be well-positioned to become an industry leader in the Middle East region. Considering that the first delivery to the Saudi government is scheduled for the first half of 2023, the current LCID stock price could prove to be a major opportunity for long-term investors.
LCID Fundamentals
Despite offering one of the best EVs in the market today, LCID stock has been hit hard this year – with the stock dropping more than 83% YTD. However, LCID could be on track to rebound in 2023 as it works to ramp up production to meet its reservations. With this in mind, LCID has been greatly impacted by supply chain woes this year leading the company to cut its production goal of 20 thousand vehicles to 12-14 thousand vehicles which was then further reduced to 6-7 thousand. Since the company has been struggling to produce new vehicles, LCID’s reservations were also affected as more customers canceled their reservations. In this way, LCID ended Q3 with 34 thousand reservations compared to 37 thousand reservations at the end of Q2.
Panasonic Deal
While these factors have driven LCID stock to new all-time lows, the company appears to be well-positioned to weather the storm in 2023. Looking to reduce its supply chain risks in the future, LCID entered into a multi-year supply deal with Panasonic to provide it with batteries in addition to its deals with Samsung and LG Chem. Initially, LCID will receive batteries from Japan but the company expects its future orders to be received from Panasonic’s US plant in De Soto, Kansas. In this way, LCID would be qualified for US federal tax credits as it would be meeting the US sourcing requirements for EV purchases. Based on this, LCID has the potential to witness higher demand for its EVs in the future.
Since this deal would diversify LCID’s battery supplies, the company appears to be on track to ramp up production in 2023 as it could now weather any future supply chain woes. With this in mind, LCID now has an enough supply of batteries through 2023. Considering that the company could now increase its sales significantly in 2023, the current LCID stock price could be an intriguing opportunity for investors bullish on the sector’s future prospects.
PIF Investment
Given that LCID requires substantial amounts of cash to finance their production, the company could be in a somewhat safe position financially thanks to Saudi Arabia’s Public Investment Fund’s involvement in the company. Back in 2017, PIF rescued LCID from financial difficulties by becoming a majority shareholder in the company.
Through this relationship, LCID was able to receive $3.4 billion in financing and incentives over 15 years to build and operate a manufacturing facility in Saudi Arabia. In this way, LCID expects to increase its production by 155 thousand vehicles annually. Considering that LCID is currently upgrading its Arizona plant to increase its capacity to 365 thousand vehicles, the company could be well-positioned to produce more than 500 thousand vehicles once these efforts are completed. In light of this, LCID has the potential to become one of the most profitable EV stocks if it delivers on these projections thanks to its pricing model.
Moreover, PIF allowed LCID to secure a 100 thousand vehicle purchase order from the government of Saudi Arabia over a ten-year period – with an initial commitment to purchase 50 thousand vehicles. According to this deal, LCID is expected to deliver 1-2 thousand vehicles annually and increase to 4-7 thousand vehicles annually starting 2025. With the first delivery scheduled for Q2 2023, LCID stock could be poised to soar as this deal could help the company bolster its revenues.
Capital Raise
While the company’s high cash burn rate is concerning for many investors, LCID recently closed its at-the-market offering where the company sold more than 56.2 million shares for nearly $600 million. At the same time, LCID is set to raise $915 million through a private placement of 85.7 million shares to an affiliate of the PIF. By raising more than $1.5 billion, LCID now has enough cash to navigate through its business in 2023 without worrying about liquidity. In this way, LCID stock could be poised to rebound in 2023 from its current dip as the company ramps up production of its portfolio of EVs to meet its reservations.
European Expansion
Meanwhile, LCID appears to be on track for substantial growth in 2023 as the company began delivering its Lucid Air in Europe with its first customers in Germany and the Netherlands. With the company looking to drive more sales in the European markets, LCID has been actively expanding its physical presence in this market. On that note, LCID recently opened its third retail location and first combined service, delivery, and sales center in Europe located in the Netherlands. These openings follow LCID’s earlier studio openings throughout Europe in Switzerland and Germany. Considering the company’s plans for further expansion in Europe, LCID could be well-positioned to secure a market share in the lucrative EU market.
Sapphire Brand
LCID is also preparing to start producing its new Sapphire brand – led by the Lucid Air Sapphire. Considered to be the world’s first fully electric luxury super-sports sedan, this new EV is set to include a three motor powertrain and has more than 1200 hp. Based on this, the Lucid Air Sapphire is expected to be the most powerful sedan in the world. With a price tag of $249 thousand, the Sapphire brand could further position LCID as the market leader for luxury EVs. As the company plans to start production in the first half of 2023, LCID stock forecast appears to be bright for 2023 and beyond.
LCID Financials
Looking into LCID’s Q3 financials, the company reported a decline in assets compared to the beginning of the year as it reported $6.8 billion compared to $7.8 billion. This decline could be attributed to LCID burning cash as the company’s cash balance declined significantly from $6.2 billion to $1.2 billion. Meanwhile, LCID reported $2 billion in short-term investments that could boost the company’s cash in the coming quarters. Meanwhile, LCID slightly reduced its liabilities in Q3 to $3.6 billion from $3.9 billion. Despite this, LCID’s short-term liabilities more than doubled to $686.5 million compared to $318 million.
As for revenues, LCID reported major YOY growth as it started delivering its vehicles in October 2021. With this in mind, LCID reported $195.4 million compared to $232 thousand. However, operating costs increased to $882.9 million compared to $497.2 million a year ago. In light of this, LCID operated at a net loss of $530.1 million – a slight increase from $524.4 million last year. With the company planning to ramp up its production in 2023, LCID appears to be on the right track to further grow its revenues in the coming quarters – making LCID stock forecast to be bullish for investors interested in EV stocks.
Technical Analysis
LCID stock price is currently at $6.7 and has a support at 6.66. Meanwhile, the stock shows resistances near 7.08, 7.67, 8.75, and 9.57. While the stock has been dropping to new all-time lows over the past weeks, many investors are bullish on LCID stock forecast for 2023 as the company is ramping up its efforts to increase production. Based on this, the current LCID stock price could be an opportunity for long-term investors as the company could be on track for substantial financial growth if it delivers on its projections. Considering that the stock’s current dip has been triggered by underwhelming Q3 earnings, LCID could be poised to rebound if it meets its projections in Q4.
Although LCID could further drop to new all-time lows, the stock appears to have formed a new support that has been holding recently. In this way, bullish investors could enter a starter position at the current LCID stock price as the stock could be poised to run in the near future. Despite this, LCID stock remains a long-term hold for many investors thanks to its potential.
Since EV stocks are witnessing a bearish sentiment in 2022, LCID’s accumulation is trending downwards. Similarly, the MACD is bearish, however, it appears to be approaching a crossover soon. The RSI is currently at 36 indicating that LCID stock could be slightly oversold. In light of these indicators, LCID appears to be poised to run in the near-term if it witnesses a surge in volume. With this in mind, LCID has an OS of 1.6 billion and a float of 586.4 million.
LCID Forecast
With LCID trading at all-time lows, the stock presents an opportunity for long-term investors as the company appears to be well-positioned for a major rebound in 2023. As the company is now able to finance its operations throughout 2023, many investors are watching if LCID could deliver on its production projections. If the company delivers on its projections, LCID stock price could be set to appreciate in value. With this in mind, LCID appears to be set to deliver on its projections thanks to its recent deal with Panasonic. Considering that LCID’s failure to meet its projections this year was mainly due to supply chain woes, diversifying its battery suppliers could allow it to combat any future supply chain issues. For this reason, many investors are bullish LCID stock forecast could be bright for 2023 and beyond.
Meanwhile, investors are increasingly bullish on LCID’s European expansion plans where the company opened three retail locations this year Germany, Switzerland, and the Netherlands. Moreover, LCID recently started delivering its first EVs to Europe for its customers in Germany and the Netherlands. Given that the European market is one of the fastest growing EV markets in the world alongside China, LCID could be set to witness a major surge in sales once it successfully ramps up its production.
LCID stock forecast 2025 also appears to be bullish thanks to PIF’s investment in the company. With the company expecting to complete its Saudi Arabia facility in 2025, LCID could benefit from the nation’s Saudi Vision 2030 that aims to transition from fossil fuels to sustainable energy. With the company already in an agreement with the Saudi government for the delivery of 100 thousand vehicles over the next 10 years, LCID appears to be well-positioned to become an industry leader in the Middle East region. Considering that the first delivery to the Saudi government is scheduled for the first half of 2023, the current LCID stock price could prove to be a major opportunity for long-term investors.